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Please answer all parts with details. Thank you! Question 1. Uniform standards and cost-effectiveness. Suppose that the marginal abatement curves for two polluters are given

Please answer all parts with details. Thank you!

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Question 1. Uniform standards and cost-effectiveness. Suppose that the marginal abatement curves for two polluters are given by MC; and MACE in the gure at right. A regulator has been tasked with achieving an aggregate reduction in emissions of 2_l] % between the two sources. a. The aggregate level of pollution across both sources before any Intervention from the regulator is: b. If the regulator were to choose a uniform Emissions (tonsfvearl emissions standard to achieve the reductions target, identify: Allowable emissions for polluter A: Total abatement cost for A (specify letters): Allowable emissions for polluter B: Total abatement cost for B (specify letters}: c. If the regulator were to choose a cost-effective emissions standard for each source to achieve the reductions target in a wa3.r that satisfies the equimarginal principle (EP), identify: Allowable emissions for polluter A: Total abatement cost for A (specify letters): Allowable emissions for polluter B: Total abatement cost for B (specify letters}: d. What is the level of total abatement cost savings from using the cost-effective (non-uniform} standard instead of the uniform standard {use letters from the figure}? e. Suppose the regulator chose to incentivize the cost-effective outcome above with a tax. Indicate in the figure where the tax would be set and label this level with \"t\". Explain (2 sentences or less) why we predict that polluter A would choose the level of emissions identied in part (c)

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